A century-old wealthy family that rose from Shanghai

A New Year Comes (1952).

After New Year's Day, Chen Guangliang's convoy arrived at No. 1 Garden Road, which is the new Ping An Bank building.

The building is now officially in use, and after nearly five years of construction, it has finally become a landmark building in Hong Kong.

The building occupies only 1.4 square feet, but it has now been transformed by Ping An Bank into Hong Kong's tallest building (15 floors). Its enclosed glass windows with a Chinese-style "moon arch" are a major highlight.

Those in the know understand that this building uses the world's most advanced 'fresh air system', so that although the windows are closed, the indoor air is circulating.

After the completion of the new Ping An Bank Building, companies such as Ping An Bank and Yangtze River Real Estate moved in; while the original Ping An Bank Building was renamed Global Group Center and became the headquarters building of Global Group (Global Shipping, Global Trade).

Besides providing office space to the Chen family business, the two buildings also lease office space to other businesses, though there are certain requirements for the tenants. As the most luxurious Grade A office buildings in Hong Kong, they naturally have no shortage of tenants.

Looking out the window at the Ping An Bank building, Chen Guangliang felt a surge of pride—no matter what industry he invested in, none of them gave him the same peace of mind as real estate.

Upon arriving at the building lobby, one finds strict security measures in place, making it difficult for just anyone to enter. Employees inside need to obtain work badges, while visitors outside need to register or make an appointment, much like the building security systems of later generations.

Afterwards, Chen Guangliang took the elevator directly to the top floor of the Ping An Bank Building. His office is located on the 15th floor, offering a panoramic view of Central and Victoria Harbour, and overlooking corporate buildings such as HSBC and Hongkong Land.

morning.

Chen Guangliang inspected the 'Exhibition Room' on the top floor. The materials in this exhibition room are all original and are historical documents on the development of Chen Guangliang's various enterprises, which are very valuable.

Back in 1927, when Chen Guangliang established his first business, Changjiang Car Rental, he took a photo to commemorate the opening. The photo showed three rickshaws on an open space in Fan Gua Lane, with nine shareholders: Chen Guangliang, Li Chao, Yang Qingshan, He Xiangdong, Pan Cheng, and an apprentice named Lin Feng. Everyone was dressed in clean clothes, with small red flowers pinned to their chests.
When Chen Guangliang picked up this photo, his thoughts went back 25 years. Most of the people in the photo had come to Hong Kong with him.

"We must be extremely careful in organizing and storing these items; they are the very soul of the Chen family business!"

"Yes, boss, we have a sound storage system, please rest assured!"

Chen Guangliang nodded in relief. Of course, he always thought long-term when doing things. He always kept three copies of these documents, and even during the war, none of them were lost. They were all moved to a safe place in advance.

Of the three documents, one is from the underground vault of the Global Group Building, another from the underground vault of Ping An Bank, and the third is from the exhibition hall here.

Regular inspections, timely rubbings, and backups are things Chen Guangliang explains every year.

Senior executives of Ping An Bank sat in the conference room for their first meeting of the new year.

Chen Guangliang sat in the chairman's seat, listening attentively to everyone's reports on their work over the past year.

The seating arrangement in the conference room was: commercial banks on one side and investment banks on the other.

Ping An Bank is now called Ping An Financial Group, which includes Ping An Bank, Ping An Investment, Ping An Securities, and Ping An Insurance.

Securities and insurance are symbolic businesses, and they are not very large at present, not even ranking among the top three among Chinese-owned companies; however, the two major business segments of commercial banking and investment banking are currently very large.

Ping An Bank Vice President Ye Ximing reported: "By the end of last year, Ping An Bank's deposits reached HK$260 million, which is more than three times that of Bank of East Asia (which had deposits of about HK$70 million). Even excluding the deposits of very large and very large enterprises, it is still more than 80% higher than that of Bank of East Asia. At the same time, we have more than 520 partner companies in Hong Kong, with loans totaling HK$1.52 million. Our own cash flow is HK$22 million. Last year (1951), our profit was HK$5.9 million."

Chen Guangliang personally has US$2000 million in deposits at Ping An Bank, equivalent to HK$1.15 million. Global Group and Cheung Kong Holdings have relatively small deposits, and have even taken out loans from Ping An Bank. Other companies, such as Cheung Kong Industrial Group and Times Pictures, also have some deposits in Ping An Bank. All of these combined amount to approximately HK$1.2 million or more.

Based on this calculation, Ping An Bank's external deposits amount to approximately 1.2 million, which is significantly more than that of Bank of East Asia. (In its previous life, Bank of East Asia only had 9500 million in deposits in 1953.)

In addition to the Hong Kong factory owners who have been supported for many years and have placed their trust in Ping An Bank, businessmen from Jiangsu, Zhejiang and Shanghai also trust Ping An Bank more.

Furthermore, people no longer trust HSBC and Standard Chartered as they did in the past, and regard Ping An Bank as a bank with similar credibility.

Otherwise, it would be very difficult for an "out-of-town bank" to beat a "local bank" like Bank of East Asia.

Ping An Investment then stated, “Currently, our real estate trust assets have reached 6500 million, mainly consisting of industrial buildings and warehouses in Hong Kong, as well as the Ping An Bank headquarters building (valued at 1200 million). We also own some properties in Singapore and Saigon. We also hold securities worth approximately 3100 million. Our total assets are 9600 million.”

The sum of 9600 million and 2200 million is equivalent to Ping An Bank's assets of HK$1.18 million.

This isn't a lot; in its previous life, the Bank of East Asia had assets of 1.54 million in 1954.

Of course, some of the profits Ping An Bank made were distributed to Chen Guangliang as dividends; moreover, much of the profit from financial investments (gold trading) was entrusted to Ping An Bank by Chen Guangliang personally.

Chen Guangliang then asked, "How are the branches in Singapore and Saigon doing?"

Currently, Ping An Bank is implementing a Southeast Asian triangular financial layout encompassing Hong Kong, Singapore, and Saigon.

Ye Ximing immediately replied, "We have over 500 clients in Singapore, with deposits exceeding 550 million in Saigon."

Saigon is South Vietnam, and it is currently safe. We only need to withdraw in the 60s.

Chen Guangliang nodded. This result was quite good, considering that they were not a local bank and had only been in these two markets for a little over a year.

As for Ping An Bank's current asset value of 1.18 million, that's because the property value is currently underestimated. Once the Korean War ends, it should reach over 1.8 million.

Moreover, the current annual profit is approaching 600 million, which is obviously a sign of rapid growth.

Next.

Chen Guangliang said, "This year, Ping An Investment will continue to invest in industrial land, commercial sites, Hong Kong securities, and properties in Singapore and Japan. In addition to firmly establishing itself in Hong Kong, the company also needs to expand overseas."

Everyone nodded in agreement!

At this point, Chen Guangliang felt that since Ping An Investment's trust department was already well-managed, there was no need to sell it to Cheung Kong Property in the future.

Later, the commercial properties under its control will be transformed into industrial buildings of 10 stories or more, and some commercial buildings will be invested in. This can be regarded as a long-term investment for Ping An Investment. At the same time, the same applies to overseas development.

Ping An Financial Group has grown to the point where it can not only compete with HSBC and Standard Chartered, but also does not need to worry about bank runs, because Ping An Bank and its sister companies such as Global Group and Cheung Kong Holdings have formed a consortium, and there is also Chen Guangliang's personal funds as a guarantee.

Of course, there is another important factor, and that is the issue of credibility!

"Boss, the descendants of Guo Chunyang are interested in selling 'Moon Garden' on King's Road in North Point. The site covers an area of ​​18.7 square feet. Should we buy it as a reserve site for Cheung Kong Property Holdings?"

Yan Kuan, the deputy general manager of Yangtze Real Estate, came in to report.

"Land reserves" is a phrase Chen Guangliang often uses in the company, emphasizing the importance of land reserves for Yangtze Real Estate.

Currently, Cheung Kong Properties' residential projects in Hong Kong cover an area of ​​approximately 160 million square feet.

It doesn't look very big, only about eight or nine times the size of this 'Moon Garden'. But in reality, the residential buildings currently owned by Cheung Kong Property are all in the real 'city center'. For example, there are more than a dozen tenement buildings owned by Cheung Kong Property in this area, covering an area of ​​20,000 square meters. After the buildings are merged, this 20,000 square meters can be used to build a high-rise building with about 300 residential units.

Chan Kwong-leung said, “Moon Garden is located on Moon Garden Street in North Point (next to the State Theatre). In addition to the usual game equipment, there is also a Star Theatre. This area is the North Point residential area, which is known as Little Shanghai and is quite lively.”

Yan Kuan admired his boss's memory; there wasn't a single street in Hong Kong that he wasn't familiar with, down to the buildings themselves.

He replied, "Yes, now that Guo Chunyang's three sons are fighting over the family property, they have no interest in running the business and have decided to sell the property."

Chen Guangliang nodded. He was also familiar with Guo Chunyang, who was a renowned "Jakarta Sugar King" and a major tea merchant.

At the peak of his business, he opened "Jin" in Hong Kong, "Jinxiang" in Xiamen, and "Jinxiang" and "Jinmao" in Singapore. As his business expanded, his wealth accumulated rapidly.

In 1888, when Guo Chunyang went to Taiwan to expand the sugar industry, he discovered the potential of developing tea, thus beginning his transformation from "Sugar King" to a major tea merchant. After operating a tea trade in Taiwan, in 1900, Guo Chunyang took oolong tea to the Paris Universal Exposition and won a gold medal for tea, causing a sensation throughout the Chinese business community.
The business world is like a battlefield; there are no permanent winners. After the global economic crisis of the 1930s, the Javanese sugar industry collapsed, severely impacting Guo Chunyang. At that time, only "Baozhong Tea" was profitable. In dire straits, Guo Chunyang had no choice but to declare his Indonesian business bankrupt. In the spring of 1934, Guo Chunyang visited his company in Taiwan, where he contracted a severe cold and never recovered. He passed away on January 19, 1935, at the "Jinmao Tea Shop" at the age of 77.

Before Guo Chunyang died, his eldest son, whom he valued most, died before him, which was a great blow to him. Sure enough, after his death, his three remaining sons began to fight over the family property and squander the family business, and Guo Chunyang's family also declined. Fortunately, there is "Chunyang Street" in North Point, Hong Kong, which prevented his name from being forgotten by history.

In his later years, like Huang Zhonghan, Guo Chunyang also built a villa on Gulangyu Island in Xiamen. In 1921, he successfully bid for a piece of reclaimed land next to the North Point Power Plant in Hong Kong, intending to build a sugar factory. However, the subsequent "Shenzhen-Hong Kong General Strike" destabilized the situation, and coupled with a drop in international sugar prices, Guo Chunyang decided to seek other avenues for development, converting the reclaimed land into real estate development. In the 30s, he built a row of 40 connected buildings, what the older generation calls "Forty Rooms," and subsequently opened nearly 300 shops. The government named one of the streets "Chunyang Street" to recognize his contribution to the development of North Point.

"Go and negotiate! After the negotiations are completed, Yueyuan can operate temporarily, but it must be completely cleaned up of prostitution, gambling, and drugs, and absolutely no dirty things should be affected."

"clear"

Yan Kuan knew that his boss had never been involved in anything that would harm people since he started doing business.

Moon Garden, which at the time proclaimed itself "the most magnificent amusement park and nightclub in the Far East ever," occupied 187,000 square feet and cost over HK$6 million to build. The cost of bricks and concrete alone was HK$800,000. The construction period was six months, with 1000 construction workers per day for the first three months and 2,000 construction workers per day for the last three months. It required 350 to 400 staff members when it was in operation.

在1949年12月22日(星期四)的下午3时，由前中华民国总理：许世英先生(1873年至1964年10月13日)主持开幕典礼，广告的对联：“月子正婵娟至宜听帘内吴歈看帐中楚舞；园林极优胜且其挥酒边玉尘赏槛外琪花。”，它的经理为 Alex Richardson先生。

This amusement park, which had only been operating for two years, was decided to be sold because of discord among Guo Chunyang's three sons, Guo Shuangao, Guo Shuanglong, and Guo Shuangqi, coupled with the impact of the Korean War, which led to a decline in business.

Yan Kuan found Guo Shuang'ao, Guo Shuanglong, and Guo Shuangqi to discuss the sale.

The three were somewhat taken aback. After all, would a big businessman like Chen Guangliang really like managing assets with a gray area?
Guo Shuang'ao said, "Manager Yan, could it be that Mr. Chen is also interested in this industry?"

Yan Kuan laughed and said, "The boss doesn't know much about Yueyuan. This purchase was my and my colleague's idea. Of course, we're not very interested in running a game park nightclub; we just want to buy this land. The three of you, why don't you name a price!"

The three brothers were astonished. Such a large deal, and Yan Kuan, a mere manager, could make the decision? On the other hand, Changjiang Real Estate was only interested in the land?
In any case, Guo Shuang'ao said, "We invested a total of HK$600 million in this site, but in fact, we haven't even calculated the appreciation of the land over the years, so it's worth at least HK$700 million."

Yan Kuan calmly said, “The three of you. Due to the Korean War, Hong Kong’s industry and commerce have declined, and the sale of Moon Garden is partly due to this. In addition, Hong Kong’s properties are also affected by the Korean War. Therefore, we can offer HK$600 million for this plot of land.”

He actually buys at a higher price and sells at a lower price, so the boss won't really care.

For example, the purchase of a million square feet of land on Orchard Road in Sing Tao was entirely negotiated and transacted by him and his colleagues, and he even signed the contract.

That's a deal worth tens of millions of Hong Kong dollars!

Of course, Yan Kuan, as a "veteran" who had followed Chen Guangliang for 25 years, and whose son had even joined Cheung Kong Real Estate after graduating from a foreign university, would naturally not be "embezzling." In fact, Cheung Kong Real Estate was quite well-established in all aspects.

The three Guo brothers were eager to sell 'Moon Garden', and besides, the price of 600 million was not negotiable, so after exchanging glances, they decided to negotiate in good faith.

The two parties briefly negotiated the price and ultimately agreed on a price of HK$610 million.

After the end of World War II, Hong Kong gradually recovered from the three years and eight months of Japanese occupation. In order to meet the public's need for entertainment, in addition to the continuous construction of cinemas of all sizes, amusement parks also emerged.

Around 1948, three amusement parks opened: East District Amusement Park, Moon Garden Amusement Park, and Great World Amusement Park.

Moon Garden is an entertainment complex comprising three parts: a theme park, a theater, and a nightclub.

Now, the news that Moon Garden has been sold has quickly reached the ears of Hong Kong citizens.

"Mr. Chen is going to work at a nightclub? That's highly unlikely. He's always been known for his impeccable conduct!"

"Perhaps they're only after that piece of land?"

Just as many people were surprised, Yueyuan Park issued a notice announcing its closure for rectification.

Clearly, Chen Guangliang would not allow Yueyuan to remain a haven for corruption after taking over.

Regardless of whether he agrees or not, Yan Renmei and Jiang Meiying don't affect his doing this kind of business; his two wives are very opposed to it.

The conference room of Changjiang Real Estate.

Regarding the Moon Garden renovation project, Chan Kwong-leung said, "Although we value the land of Moon Garden, we didn't buy it at the price of the land itself. So we want to renovate it and continue operating it. My only requirement is that there should be no gambling, prostitution, or drugs. It should become a place where Hong Kong citizens can bring their children and families to play, and a place where young couples in Hong Kong can have a safe date."

Everyone nodded.

Lu Yuantai, general manager of Poly Construction, said, "Then we will only retain the theater and amusement park, and increase patrols to ensure the safety of the park."

Yan Kuan, his "apprentice," possessed a keener business sense, stating, "If we treat it as land reserves, it might take a long time before we develop it, given the sheer size of our land holdings. Therefore, our strategy needs to be long-term. My idea is to add animal viewing facilities, along with constructing antique-style buildings and streets, learning from the planning of the Times Film City, only on a smaller scale."

Everyone's eyes lit up.

The combination of amusement park, animal viewing, theater, and antique-style buildings makes it a perfect whole.

Chen Guangliang said, "The Moon Garden will be renamed 'Song City', with a focus on creating a commercial model based on ancient-style buildings and streets; animal viewing will be added, and we can purchase rare animals such as elephants and tigers from Myanmar; the existing amusement facilities will be upgraded and opened first; the theater will be leased to Times Cinema for upgrades and to expedite its operation."

No sooner had he finished speaking than Yan Kuan offered his own idea, saying, "Why not invite Times Pictures to cooperate? After all, they are veterans in this industry. If we cooperate as a whole, we can collect rent and avoid having to set up this department separately."

Ultimately, Cheung Kong Properties is committed to real estate development, and its acquisition of Yueyuan is also for the sake of the land.

His suggestion made Chen Guangliang realize that even the most capable person can make mistakes.

Otherwise, what would he need so many consultants and management talents for?
“Okay, then you can discuss it with Manager Zhuang and the others from Times Pictures. In short, Yangtze Real Estate is mainly considering the value of this land. But we will not consider using this land for residential or commercial purposes within the next twenty years.”

"Ok"

Chen Guangliang's idea was that this plot of land wouldn't be considered for development into a 'large-scale housing estate' until at least the 80s. (End of Chapter)